tv Squawk Alley CNBC February 17, 2016 11:00am-12:01pm EST
good wednesday morning it is 11:00 a.m. on wednesday. john steinburg joins us today. former ceo at the daily mail. big story developing as we watch another big gain for the markets. that is apple. the ceo pledging to fight the federal government over an order to hack an iphone belonging to one of the shooters from the terrorist attacks in san bernardino. >> hi carl you remember the terrifying scenes in san bernardino in december when the two attackers killed 14 people and wounded others. the fbi has been investigating this situation ever since and they have been able to obtain the cell phone belonging to said. this is the phone owned by the
county where he worked but he used it during the course of his daily life. for two months the fbi has been trying to get access to that cell phone that they found in the vehicle where he was during that shoot out with police officers back in december. what the u.s. government has said in a court filing is that it needs assistance from am to get into that computer on the cell phone and determine who he was talking to. where he might have been if there ultimately were any other accomplices here. interesting in the government filing they're saying that although am publicized the fact that it had written the software differently for the ios 9 operating system apple yet retains the capacity to provide the assistance sought here in and last night we saw the u.s. government weighing in a federal judge with a court to order call tty: 1-800-544-3316 ing apple to cooperate with the government here. apple is saying it is going to resist that effort. so now they have five days to
respond officially to this court order. what the court wants apple to do is bypass or disable the iphone's auto erase function. also to enable the fbi to get access. and to ensure that the device software won't delay attempts. what they have in mind and into the iphone. over and over and over again until they guess the right one. and to delete important information and as of now apple is saying no, guys. >> thank you very much. on that note, let's get a lot more on apples response. a letter from tim cook that is truly remarkable. josh is in san francisco. hey, josh. >> apple's ceo's position is clear here. he is ready to fight the u.s. government in court over this decision. in a letter to customer cook came out swinging condemning the
court ruling that would force apple to create a back door into iphones and cook says the fbi wants apple to create new code that would circumvent it and a key that could open the terrorist iphone. no chance says cook. we can find no precedent for an american company being forced to expose it's customers to greater risk of attack. doing so would hurt only the well meaning and law abiding citizens who rely on companies like apple to protect their data. and apple's position is that the government once it has this key can use it again and again. the government can argue that it's use would be limited. and there's no way to guarentee such control. we know this debate has the terrorist attack in san bernardino has only heightened the standoff and the federal
government on this issue. apple will contest this judge's order and fight the government in court and it already has some new allies. the electronic frontier foundation. it plans to support apple in this encryption battle. back to you. >> thank you very much for that. obviously a lot of discussion all morning long. the legality of this, the precedent, the conversation they're about to have on a practical front. what do you make of it? >> what i make is that the position is some what untenable because what happens in a case where there is a pending threat against an individual or target. somehow it becomes known that an individual terrorist is on his phone and the only way to get this information is to break into the phone. it would be very hard to argue in that ethical conundrum that we wouldn't need to get into the phone to prevent an attack. it's easy for tim cook to say that for an after the fact there is no life at risk at this moment but we find out the plans for an attack was in a phone apple would have to allow it to
be opened up. >> i think tim cook is in a losing position here and i'm sympathetic to the encryption argument. we talked on this program before i have been critical of the tech industry for not having a cohesive message across companies about it. they have been waiting for an incident that they can respond to. now tim cook is responding. but when you're responding in a case where there's a terrorist act we all saw the aftermath of that playing out. on twitter, on social media and conversations i don't hear a lot of sympathy for this position. somehow am and others in the industry that want to defend encryption want to get out ahead of this and say here's a solution. what we can do to help more. >> there's no sympathy. we saw what happened in san bernardino. we haven't really seen a clear example of what the worst case scenario could be and apple's tim cook is saying they're a u.s. based company but they operate globally and if the u.s. government can demand this can
china's government? can russia's government? can other governments do the same thing? >> i thought where you were going with it is if this is put into apple devices it's going to be unbelievably detrimental to their international sales. no other country is going to want to buy this equipment if the fbi and nsa accessed these devices. nicholas weaver put out on twitter that by virtue of the fbi having this access the nsa has access as well. i'm surprised the stock isn't down more today on the threat of this happening. >> because of the prospect of -- even if cook stays firm courts rule not in his favor and then international sales plummet. >> i don't know if plummet is the case but look what happened with cisco. after it was found out that the u.s. government was intercepting the equipment and installing the spying software the fbi can hack into any iphone and china and any other country and we have a track record basically of hacking merkel and stuff like that as well too.
>> but what's being proposed here sounds to me like it's interesting. it's not just a key where you can unlock any phone. it's a firmware update that apple will rewrite a version that shuts down the security feature. my question will be why can't you have a self-destruct on that custom built version of ios where it only works for three days but you guys are coding it from scratch. limit the government's ability to use that. let them get into this phone and work on this phone. >> you make it sound so easy. >> but apple at first said we can't get into these phones and now they're saying we can but we don't want to. >> they can't right now. barring the creation of a new tool. >> but they made it sound like they couldn't do it. it's encryptive. but we do have access but it's unprecedented we don't want to do it. >> maybe five years ago there would have been a willingness to trust him. that trust has been destroyed. so basically if the door is open
and the government is able to do a brute force attack on the phone where they're able to put the code in more than ten times without the phone locking out people think they'll use it and to be honest how can you blame people. >> let's bring in former fbi assistant who is joined us on topics close to this before. it's good to talk to you again. >> good afternoon. >> we're getting all kinds of suggestions via twitter. apple decodes it. this has been going on for quite sometime in 1994. the question was giving law enforcement agencies under court order access to communication carriers so that they could do wiretaps and that sort of thing. it's now extended into, you know, the technology that exists today. the iphones and all of these various means of communication. the device itself building some level of access under court order.
and i don't know that there's any real middle ground here because there should be no safe havens for bad guys, for terrorists, for kidnappers, for organized crime. if you said we're going to block the governments access or not enable the governments access you could do that in any recordkeeping function. >> so you think it's game over already. tim cook is headed straight into a brick wall. >> i don't think there's a legal justification. sufficient legal justification to not enable the access under court order. court says you have to do it. you have to do it. >> chris is the best case scenario here worth the worst case scenario? the best case scenario that the fbi has access to whatever may or may not be on that employer issued phone that the san bernardino shooter had. the worst case scenario that the code ends up in the wrong hands or that a corrupt government of another country can press apple to do the same thing. >> that's the risk we run in any
industry. we know that these other governments like china, russia, would love to have the access but again i go back to, maybe i'm a little bit too dogmatic about it. maybe i'm not objective about it as a former law enforcement fbi agent but to deny government access under court order, that just creates safe havens for all different kinds of bad guys. >> chris, what do you say to the argument that even if apple opens up this access to encrypted information and residing in icloud that terrorists are going to use other encrypted apps layered on top of the operating system anyway. as soon as they hear this is an issue and we're back to square one and you won't be able to get every single app maker. many don't reside to open up encryption.
>> it's a battle. they're tasked with preventing the next terrorist attack. finding that unicorn and preventing it from happening so they need all the tools they can get and again you have to emphasize this is under court order. it's not going to be perfect. technology is always going to run ahead of this and it's running behind. and we do have this iphone here and there shouldn't be reason to get this technology in. >> what is the relationship between the fbi and nsa in practice. if the fbi has access to a tool how ready does the nsa have that access and if it's more of a wall between the two agencies that the outcider might believe. >> i don't think there's as close a relationship between the nsa and the fbi as the fbi and the cia and you witness back a few years back that the current
director refused as of one of the highest justice department directors refused to be in that nsa program. he threatened to re-sign. but i'm not going to say they don't share information from time to time. nsa operates completely and the intelligence frame work. >> a lot of people asking how we would be reacting if in fact the maker of these phones was not an american company. if they were a chinese company the conversation might sound different. >> it's like access to bank data now. we can get access to u. s. markets and u.s. banking so there's leverage there and it's been used effectively in the financial sector. >> chris joining us to talk about this conundrum.
thanks so much. john thanks to you. we'll be talking about this for awhile. >> kayla. >> meanwhile the markets have been staging a rally. the third day of rallies. the dow is up by 201 points. it's about 115 points away from exiting correction territory but the s&p 500 has done just that this morning. of course the broad background to the rally this morning. comments to ministers in the uae as well as iran about the production freeze that could be coming from the oil market so the move in oil has been reflected by the move in equities. revenue also helped by a surge in hotel bookings and that stock is up 11% this morning. >> when we come back to 2015 having a tough 2016. amazon and netflix down more than 20% to start the year. what to expect from these and other high flying tech names. plus an awakening in vr.
all of those are down sharply year to date. the best performer is google which is only down about 7%. competitor price line topping on earnings today. expedia with a sympathy bounce. mark is the lead internet analyst at rbc capital markets and we're only 10% through the year so there's obviously a lot of time for these companies to turn it around but do you worry that so much value has been destroyed in this early part of the year that it would be impossible to make it up. >> we have had a fundamental change on one of the stock linked in. we got that call wrong. we downgraded the stock. the growth outlook changed the few. the investment thesis for us. on the other names we still think if you look at all 40 u.s. internet stocks you pick the best half dozen names. we think they can outperform. half dozen names on a fundamental basis remain book,
amazon, netflix, google, expedia and price line. we continue to like the stocks and we think a few of them are either extra attractive right here and probably at the top of the list is amazon. >> so you believe mark that what has happened so far this year is just a resetting of valuations. not some sort of broader speecur shift in the spending habits or advertising budgets for a lot of these companies. >> we had very consistent secular growth trends. google gave us accelerating revenue growth in it's 16th straight quarter of revenue growth. amazon gave you the th straight quarter of 20% retail revenue growth and price line gave you it's 40th consecutive quarter plus bookings growth. i don't see any change in the fundamental trends and we had results out of facebook and that's why the stock out performed the market. and google, i was actually surprised that google isn't more
outperforming the market. >> correct me if i'm getting some of your thesis wrong here but if i recall you dropped facebook from the bagel because you viewed the upside as being limited and sense you recalibrated that expectation prs that company. is there an overarching lesson there. that difference between the performance and facebook and we've seen lately about the continuing strength in strong names and perhaps the limited potential leads in the near term of smaller companies. >> a couple of points there. >> there's been very few out performers. the market is between winners and losers and very few winners in the small cap space. we much prefer the small cap space and there's a big difference between twitter and facebook between an ebay and an
amazon and we think the latter names remain the better ways to play it and linked in had company specific issues and book out performed for a variety of reasons and google fully plays in that. it's a much less expensive stock. and given it's current multiple and it's growth outlook there's a real positive investment thesis change on google that we like. it's remains one of our top picks. >> it's as much outsized a amazon or netflix. >> you don't think either one of those companies have been vulnerable to a linked in type event. just to be clear. >> all of them would be. you miss numbers or do you have a dramatic acceleration in your growth trends, linkedin had one of the more aggressive valuations. it's much, much stronger for a name like price line.
google at 19 times earnings. it would be hard to see that correction in one of those three names. >> ten months left in the year. a lot of times for the companies. continue trying to prove your thesis right. we appreciate your time this morning. >> coming up t-mobile's john ledger talks tim cook and the debate over privacy versus security. what he told jim cramer. still watching the markets and all the major indicesed. and up 1.5%. we'll bring that to you later on this hour. don't go away.
obviously what we've got is a situation where he's requested to help authorities deal with the security of the device and i, you know, we'll see where it goes. i wouldn't know how to advise him but i understand both side of the issue and i think it's ground breaking. >> if you were asked directly -- >> it's a hard one. we value security and privacy for our customers at the pair mount basis but the questions right now associated with national security and the horrific accident where 14 people were killed i don't know how to balance it. my heart goes out to both side of the issue. >> he doesn't know how to balance it. found the question that makes him sound like a regular mortal ceo. he completely punted. i was surprised. >> this is not like calling a guy with basically voided himself with worry over t-mobile. this is something much larger than that. we're just at the very beginning of what appears to be a long and
drawn out court battle. >> it appears that the telecom services company have been able to assist the fbi. it's up to the manufacturer at this point. >> the carriers traditionally one might argue bent over backwards from a consumer peck speck tif have gone too far in helping the government. but in this era, the computing companies like apple have not microsoft fighting u.s. government over cloud issues over data centers in silicon valley and it's friends up in seattle. fighting a lot harder. apparently maybe showing us how hard it is to get a coalition together to deliver a single message. >> does his consumer base appreciate what he is doing. or crucify him for it. hard to tell. >> everybody trusts the government, firemen and police officers as clearly as they
should. >> the company has five days to respond to the judge's order. this is not even close to the last conversations. up next another check on the market. third day of rallies for the major averages. also counting down to the close in europe which is always the next thing to watch in the market. we'll bring it to you on the other side of this break. wow, that was random. random? no. it's all about understanding patterns. like the mail guy at 3:12pm every day or jerry getting dumped every third tuesday. jerry: every third tuesday. we have pattern recognition technology on any chart plus over 300 customizable studies to help you anticipate potential price movement. there's no way to predict that. td ameritrade.
hillary clinton and bernie sanders are neck and neck heading into the presidential caucus on saturday. on the republican side donald trump continues to hold a commanding lead over marco rubio and ted cruz. an american airlines plane clipped the tail of a southwest plane in detroit. it happened this morning at metropolitan airport. no reports of injuries on either plane. a sus side bomber killed at least nine recruits at an army camp. yemen's isis affiliate claiming responsibility for the attack. the saudi led military coalition is using it as a base for air strikes against rebels. pope francis departing mexico city to travel to the country's northern border. he waved to a huge crowd along the streets on his way to the airport. he will address the plight of migrants trying to reach the united states. that's our cnbc news update this hour.
let's get back to squawk alley. >> thank you. let's get to simon hobbs and get you the european close happening. >> you can see a lot of green, descent bounce back as we bounce back in the united states. there's a shot across for those waiting for the ecb on march 10th. one of the senior members warned the market against mind games. he's saying we are in talks about how we give ample liquidity to the banks but it's very important that the markets don't get lost in mind games on institutionally or technically impossible feats. in other words we may not buy the nonperforming loans. the banks have bounced back and made gains throughout the day today. deutsche bank over 6%. they announced that it's going to basically dispose of the 25% stakes that it has in many regional banks by setting up an entity to buy them from it but it's $20 billion that goes into the capital barrier there so that boosts credit as you can see and the mining stocks have
come back again. presumably on short covering. looks like the ceo of glencore persuaded 37 banks to come up with loans that replace the rotating credit facility that they have there. that's almost $9 billion so you can see the gains that you got as the shorts cover. meantime very important politically for europe we're at the point where the u.k. prime minister david cameron has to basically tomorrow night do a deal with the rest of europe that he can sell on friday to the british electorate so they don't vote to leave the european union. angela merkel saying that it's important for the u.k. to remain in a strong europe and yes further possible integration it's possible that doesn't have to be an obligation on every country to join in though as she puts it the devil is in the details. momentarily we should get the text of what the deal is in england from the rest of europe and then of course the discussions tomorrow night at the summit and then hell breaks
loose in the u.k. on friday. >> apple is getting ready to fight a federal magistrate's order to help unlock an encrypted iphone used by a san bernardino shooter. the former council to national security and director of the homeland and national security law program. thanks for joining us. >> thanks for having me. >> so tell us what happens next. tim cook says he's going to fight this. how long do you expect that to take and what options does he have? >> he can oppose a magistrate jung's order. it has to be reviewed by a district judge and apple can appeal that way all the way through the courts of appeals and through the supreme court. they can resist for as long as they want. >> is this the example? the case that some of us have been waiting for to see what happens with encryption. silicon valley's desire to keep it completely locked down. the governments desire for
access. could this be the lynch pen for that issue? >> this could be but it's a little bit of a different scenario and here you have an iphone from a known terrorist and known criminal that killed 14 people and apple could potentially give the government the ability to sort of bang on the phone enough times to try to break in and that's their fighting right now. it's less breaking the encryption and disabling the ability of the phone to automatically reset itself after ten failed attempts. it's a different thing but a similar issue. >> the fear though is that that code and that technology ends up in the wrong hands. they have been subject to their own separate hacks. the government had it's top security data hacked. the question now is is there a way to do this safely if in fact apple is up against a wall here. >> that's a great point. that's what tim cook raised in his letter. it's a hard question. you have to balance to push the privacy and security on both
hands and you have to also oppose the issue of whether these companies are able to protect the privacy of their own customers. it's not that they're not important issues. they are 57bd apples right to say it's at the floor of our economy and at the same time we got away to have access for this critical data, particularly a case that you know was a phone used by a terrorist where people have been killed. >> judging from the way the courts have decided, especially since this issue has come to the floor in recent years is there a way to guess as to how they might go. >> i they the courts are struggling to balance these interests. at the end of the day they provide plenty of room to order the companies to comply with these orders. as long as they're not burdensome or cost too much. the courts have the ability to order. whether they'll do it or not is a hard question. there's an opportunity here too for congress to step in and make laws that balance this really interesting privacy on one hand. national security on the other. >> it sounds like you're saying
that cook stands as it stands right now is an uphill battle. >> it's hard to know. different courts have gone different ways in the ninth circuit and probably tends to favor am position. this is a very similar case apple is going on in new york. it's likely to go the other direction. this is an issue that may be teed up in the supreme court. >> a lot of people wondering why this has to be about more than just this one phone. that that has belonged to a known terrorist. why can't it. could it just be about this one phone do you think? >> the courts will look at it about the one phone and one case but there's larger issues at stake here and the way this gets resolved is a hard question. it's not an obvious answer one way or another. but there has to be decisions made here because at the end of the day you don't want to have to legislate in a crisis. so the worst case scenario is an
attack happens. you want people to figure this out now when things are calm and still relatively quite. >> if you were in charge of having to construct apple's legal stance, i mean, i'm not a lawyer. is there room for interference or anything like that here? >> well, certainly, apple believes that it's in it's economic interest to take the stance it's taken and it's own consumers. at the same time, you know, they do have the ability to say this is burdensome under the existing statute and what's being used here to issue the order. and to say it's too costly. the government could say we'll pay for it but the burden is something they have to consider in these cases. >> too costly. probably not a strong argument. >> i don't see that one going too far. especially. that were to go to a jury. >> but the stakes are high when it comes to just the moral imperative that tim cook clearly feels over privacy. it's something he stated again and again and not just in these
cases but in apple's philosophy. overall one gets the sense that he feels that apple is being asked to go against it's core principles. is there room for deescalation here you think as far as the government and apple getting together and forging some sort of committee in washington but some sort of way forward to get more help at least in certain specific circumstances. >> look i hope so. i think that's critical. as i'm saying earlier the real challenger is you don't want there to be a crisis and congress to feel like it has to step in to the breach and regulate the out come and the fbi wants access to everything. apple wants to deny access to everything. that can't be sustained and, you know, eventually it had happen. when that happens congress will legislate and my fear is the privacy will go out the door and that's the worst outcome.
>> indeed. thanks for joining us. >> thanks for having me. >> coming up, stocks still rally with the dow and s&p perhaps out of correction territory. but first, rick, what are you watching today? >> well, i'm watching the markets. in the context of mario draghi. he says he's going to do more. it seems that doing more just gets less and less so we're going to look down the road. in a world of pulling forward, what lies ahead after the break.
plus the fight over privacy. apples battle with the fbi means for the future of your own personal information and the one area of the market. one portfolio manager says is a big risk not to own. we'll find out the answer to that key question coming up in about 15 minutes. >> sounds good. thanks so much. let's get over to the cme group and get the santellie change. >> good morning. it's all about home field advantage and home field advantage brings out a lot of fibs. consider the current state of politics regarding the supreme court. comments made by those in power today that were out of power in the past and vice versa. you know, a few years ago you
didn't like these appointments. today it's a different story. it's a lot the same with the market. and i understand them. and needs to be critical and that tie anonymousic. and high frequency shot and you want to make money and if making money, negative interest rates, mario draghi special meeting, more stimulus any time these things come up, you go on and a market moves higher and you collect a check you're not going to complain. and on the other side of the aisle you have the real economy and you never hear a peep. the average middle class isn't going to squawk about the way central planners have taken over
markets have changed the face of investing maybe forever, they don't ever really understand what the fed is. that seems to be changing and that will be the beginning of some form of new religion for an entity or entities around the globe and now they take over. they take things over for the most part. richard fisher told us what we all know and we could verbalize whether we had an inkling of this before had. richard fisher basically the cnbc contributor said the obvious that all of these policies are designed to do something very simple. pull lots of activity from the future. to right now. to pepper the economy. to give it a chance to take over. and the latter part is the hypothesis founded in models that don't work anymore. as long as we keep pulling
forward we're okay. because negative interest rates were received not very well. look at a year to date chart of the dax to be your poster child of this but we all know that it isn't that difficult to move the market higher but it's a process and this is a process that you the viewer is going to learn much about in the next six or seven months because even though mario draghi's words did give us a bounce and they did exactly what any entity would do when the light goes on or the bell ring what is we want to see is how long it takes to extinguish back into negative dax territory because like any medicine whether it's a placebo or not, the more you take it the less it works for a shorter period of time. kayla, back to you. >> rick, thanks. up next, virtual reality in a galaxy far, far away. the future of star wars and vr when we return.
joining us with more is the executive in charge of lucas films x lab and she joins us from san francisco. good morning, good to have you. >> hi, carl. it's great to be here. thank you so much. i'm a big fan of squawk alley. >> that's nice to hear. we're obviously a big fan of vr and we're all trying to understand where we are. we know that we're toward the begin ofg this big movement. but what are the important things that need to happen over the next couple of years to really get this going? >> it might be worth starting with the fact that we actually started by defining the business a bit more broadly than just virtual reality. we defined it as immersive entertainment and we believe that these disruptive technologies like virtual reality provide new platforms for story telling so for us this is really about the innovation in story telling but it is like being in the early yiest days o
has its value but i think vr offers really unique opportunities. the other thing is as you probably well know is that there's a whole range of vr head sets. from mobile based like the google cardboard. like samsung up to what we call desk sets like oculus and htc vibe. so on the google cardboard and at that end it's much more affordable. people will have access to these kinds of experiences much earlier. of course what you can do with them varies depending on the power of the actual hardware. >> and we know that it was done before cardboard. i wonder what you think adoption rates need to look like on things like the oculus over the last couple of years. and run out tomorrow and get one. >> to some extent i think it's
going to be the quality and compelling nature of the content that's going to drive people to want to go out and actually purchase these kinds of head sets. and what we can do is really develop very compelling stories that take advantage of the unique capabilities of the head sets. >> how do those conversations go when you're trying to talk to people creating and producing the content to make it more right for virtual reality. >> in terms of the conversations are basically, we're saying, what is it that virtual reality offers that the other forms, the other platforms don't offer. so for example we have films. and are very, very powerful and the launch point for us.
the question becomes how do we use the film as a portal. and sort of if you will punch through a scene and enrich and expand the cinematic experience. i actually believe that there's a possibility that we're going to see whole new product categories. an expansion of what home entertainment means so i think when we're talking to people we're looking at how do we -- how do we further the state of the art of story telling in unique and powerful ways. that are specific to what this platform offers. and it's the kind of things that work and don't work. you can't use the same language. the same techniques that have been so -- have been developed with such maturity in the world of film making. >> vicki, disney clearly has a lot to gain from figuring this sort of thing out from theme parks right on down but other big media companies including our parent comcast are also looking into virtual reality.
what do you expect to determine which sort of content companies win and exploit this technology t the best way. >> in our company we always say creative leads. technology is an enabler. so in addition to the hardware itself we have been pioneering some high fidelity real time graphics but at the end of the day and push the boundaries of story telling and begin to understand and realize unique story experiences can be delivered in vr and eventually augmented reality et cetera. it's going to be ultimately a creative leadership. >> well, we can't wait for that. along side episode 8. please come back. it's good to see you. >> i hope -- >> go ahead. >> i hope you'll come out and
visit us and see what we're doing out here on the west coast. >> we're going to laguardia right now. vicki, thanks so much. >> dow's up 209. three days in a row. of a 1% plus gain in the s&p. we haven't done that since 2011. when we come back would you buy clothes designed by amazon? that question in a second. hey mac. ready to shave?
oh hey. i've been using you forever. you're grimy. grimy? naw, that's personality! who you talking to...? hey, the wife! jump in, let's all shave! change that filthy razor! change blades? woo-ooh, rich folk alert! fooled me with your linoleum tile. stop hanging out with a dirtbag razor cause new ones are so expensive. dollar shave club. amazing razors delivered for a few bucks. shave with a fresh blade anytime. try dollar shave club.com
when you buy amazon clothes. you might have a chance soon. the company is going to launch it's own private label clothing brand. amazon is hiring for its private label team. lists several open positions on its website. i'm trying to think what amazon brand things i would buy. definitely socks. >> undershirts. >> not a big undershirt guy but belts. >> sure. >> anything that doesn't require fitting or size specific stuff. >> so women are ruled out pretty much? >> kind of. although jim was mentioning he is going to host a panel. he is beginning to warm to given the extreme decline of the stock given the fact that amazon hasn't put him out of business.
>> i bought quite a few things on etsy. it's an interesting play. seeing a bit of a bounce as the nasdaq has come back. >> that's up almost 8% today. the market continues to rally. dow is about 60 points away from break even. let's get over to scott headquaters in the half. >> welcome to the halftime show. john and pete with us. he is jp morgans head of u.s. equity strategy. our game plan today looks like this. standoff. the very latest in the battle between apple and the fbi. what could be next and as some big names trim their stakes in that stock. one portfolio manager says you'd be crazy not to